Correct Answer: Option B

Explanation

A contractionary monetary policy leads to a balance of payment surplus and there is increase in interest rate or cash reserve ratio thereby reducing investment and output. It is used to control inflation, to stabilise the price level exchange rate and achieve equilibrium in the balance of payment and also promote economy development.

• explain petty cash book for me? Answer this

  1 Answers   ·   Accounting   ·   21 hours ago
• what’s the cut of mark for political science in uniabuja? Answer this

  1 Answers   ·   Art   ·   12 hours ago
• How does the repetition of the phrase, "I rise," affect the tone and overall impact of the poem? Answer this

  1 Answers   ·   10 hours ago